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The advice around Shared Ownership homes can feel confusing for first-time buyers, but there is a lot to look forward to when you use a scheme like Shared Ownership to get onto the property ladder. We all know that Shared Ownership offers cheaper rent than traditional private renting, but what else does it have going for it? Are there other lifestyle benefits that come from living in a Shared Ownership home?a
Everyone deserves to own a home, no matter the situation life sends your way. Whether you’re freshly single, a single parent, or just flying solo, the housing market can be the most impenetrable to single first-time buyers. It can often feel, as a single person, like homeownership is one of the more exclusive parts of life, prohibited from those without a partner or reliable group to chip in together with. But it’s not the truth! Shared ownership is a great way for single first-time buyers to get onto the property ladder. But how?
Shared ownership is a smart move for single first-time buyers thanks to its multiplicitous benefits, including:
Keep reading to understand how shared ownership benefits single first-time buyers, and how you can check your eligibility for the scheme.
First things first: yes! Single people can use shared ownership schemes to buy a home, making it a great method for getting single first-time buyers onto the property ladder.
More specifically, to be eligible for shared ownership schemes, you must:
Learn more about the eligibility criteria for shared ownership homes by reading our blog: What Is the Shared Ownership Eligibility Criteria?
Shared ownership homes are generally cheaper than open market properties, making it easier to get a mortgage and save for a deposit. The deposit is calculated based on the value and price of your purchased share rather than the total value of the property.
Because shared ownership rents are based on the value of the share you own, if a single first-time buyer can overcome the cost of a deposit, they also get to benefit from cheaper rent than what’s found on the open market.
Staircasing into a position of 100% ownership is one of the biggest benefits of shared ownership, allowing you to sell on the open market without your landlord taking a cut. This allows you to get onto the property ladder as if you hadn’t used an accessibility scheme, making the property playing field more level for single people.
Typically, single first-time buyers struggle when applying for a mortgage because the affordability checks are based on just their solo salary. This can put single buyers in a difficult situation, but shared ownership lowers the bar to entry significantly with cheaper deposits and mortgages. This makes the affordability checks easier to pass and a mortgage more accessible.
The bar to entry for homeownership is significantly lower with shared ownership schemes. This is thanks to lower deposits and cheaper rent than privately-owned properties.
You can check the affordability of homeownership through shared ownership schemes by using our online calculator.
All the same kinds of homes as usual are available to single people through shared ownership schemes. They are not locked away just because of your relationship status. The types of homes single first-time buyers (but also anyone) have access to include:
Check out Plumlife’s selection of new-build shared ownership developments online to see what properties are available in the North West and Yorkshire.
Make sure to be aware of the repairs and maintenance responsibilities that come with your shared ownership home, and the associated costs. Some shared ownership homes, particularly flats, include communal spaces, for which you will likely need to pay a monthly service charge to contribute to their maintenance. The service charge covers:
There are some extra costs to consider, other than rent and mortgage payments, when it comes to shared ownership as a single first-time buyer. When you purchase a shared ownership home, some of your cost considerations should include:
While most modern shared property homes come with a 990-year lease, there is the possibility that, with older properties, you may need to pay for a lease extension once yours runs out.
Learn more about lease extensions by reading our blog: How Do I Extend My Lease?
If you successfully staircase all the way up to 100% ownership of your home, while you won’t have to factor in your landlord’s cut to the selling price, you will need to pay for a valuation of your property in order to generate an accurate price. This, however, will likely be negligible once your home has been sold and you’ve moved along the property ladder.
Plumlife has a great selection of Shared Ownership developments across the North West and Yorkshire for you to browse today. Whether you’re single and looking to get onto the property ladder alone, or looking for somewhere affordable to grow your family, we’ve got the new-builds for you. Contact our team to discover your eligibility today.
Take a look at more blogs about Shared Ownership below:
The core lifestyle benefits of choosing a Shared Ownership home include:
Keep reading to dive deep into the multiple benefits of owning a Shared Ownership home, and discover how you can get started on your homeowning journey.
Shared Ownership provides more stability than renting because you have the rights of a homeowner, not just the rights of a tenant. This means you’re afforded much more control over your home and its costs, which comes with more responsibilities.
Additionally, the ability to choose your level of ownership provides stability by ensuring you always have some assets in your back pocket, which can even increase in value if you put the work in.
Knowing that you have an ownership stake in your home is essential for building security in the long term, in the same way that owning a home without Shared Ownership provides.
Shared Ownership properties, such as those on Plumlife developments, are typically new-builds. These are great for first-time buyers looking to also use their home for investing in their future. Shared Ownership new builds have long leases, providing security for years to come.
Shared Ownership is ideal for growing families because it provides an accessible route to homeownership that lower-income families and individuals without significant savings wouldn’t be able to afford. It lowers the barrier to entry by targeting first-time buyers who cannot afford mortgages and deposits on other open-market properties, allowing buyers to save better for their futures.
With Shared Ownership, you’re able to stay in the area you love for as long as you want, thanks to long lease contracts and the ability to staircase up to higher percentages of ownership.
New build developments are also great communities in their own right. Everyone is in the same position and starting their lives in fresh homes, meaning that you’ll have plenty of chances to discover something new about your local area.
Check out Plumlife’s catalogue of Shared Ownership properties in Manchester, the North West, and Yorkshire to begin your homeowning journey today.
Homeowners in Shared Ownership homes often love the level of control they have over the decoration of their homes, especially in comparison to standard private renting. In a Shared Ownership home, you can make any cosmetic changes you’d like so long as your leasehold doesn’t explicitly prohibit it. You can make all kinds of aesthetic changes to your home in this way, including:
You should be aware of the ‘setting’ time a new build might require if you’re moving in soon after its construction. In this period of about a year, the home needs time for its base construction materials to settle properly, so most developers advise against making many cosmetic personalisations in that time.
The only thing that you’re not allowed to do in a Shared Ownership home, when it comes to decoration, is make structural changes. This is because these kinds of alterations fundamentally change the property and its value, which may not be in the interests of all shareholders. Your lease will outline the specific restrictions and methods for appealing to your landlord, so make sure to check this before you make drastic changes.
Read our blog to learn more about how you can creatively decorate a new build to make it feel like home: 5 Decorating Tricks for Making Your New Build Feel Like Home
Check out our selection of Shared Ownership developments across the North West and Yorkshire with Plumlife Homes. Contact our team to discover your eligibility today.
Take a look at more blogs about Shared Ownership below:
What Shared Ownership Costs Should I Be Aware Of?
Is Shared Ownership a Good Idea for First-Time Buyers?
Is Shared Ownership Better Than Renting?
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